China Parenting Network Spends $6.3M On 18% Of Blockchain Startup Ccloud
China Parenting Network is investing $6.3 million to blockchain startup firm Ccloud Technology.
A Hong Kong-based investment holding company engaged in e-commerce businesses, China Parenting Network Holdings Ltd., said it would take an 18% share in blockchain startup firm Ccloud Tech Ltd. In a statement, China Parenting said it would invest $6.3 million (HK$50 million) through a subsidiary into Ccloud Tech by buying new shares issued by the company at a subscription price of HK$5555.56 per new share.
China Parenting is primarily focused on provisioning marketing and promotional services in the maternal industry in mainland China. It is also engaged in mobile applications and mobile platforms for the children, maternity and infants market. For its part, Ccloud is a newly-created company with a focus in development and operation, as well as technology research by utilizing blockchain technology in the real economy.
The deal will allow China Parenting Network to enter the blockchain technology reserves in the CBM market’s business chain, as well as the acquisition of the technology to expand its service field.
Under the deal, Ccloud is expected to finish the research and development and related business of blockchain platform within three years from the date of the purchase of the share subscription as required by China Parenting’s subsidiary. However, if Ccloud fails to deliver as promised, the subsidiary can demand the former to repurchase the new shares at the purchase price with a guaranteed investment return computed at a compounded yearly interest of 6%.
In addition, the original shareholders are required to promote the subsidiary of China Parenting to raise its share up to 36% of the total issued share capital in case the blockchain portfolio of Cclould Tech and its affiliates failed to reach $5.09 million in overall valuation within three years from the date the subscription agreement was signed.
In 2017, China Parenting Network posted a $5.21 million from $6.76 million in 2016, data showed.
Chinese firm to finance North American startups
Indeed Chinese investors awash with cash are looking for opportunities in blockchain startups.
Beijing-based Node Capital announced a few days ago it would invest up to $90 million worth of Ethereum to fund startups in North America. Mainland investors are looking for opportunities outside of China after the government banned all initial coin offerings (ICOs) and cryptocurrency trading.
Node Capital partner Shi Xiangyu said they are looking at opportunities that would take advantage of local opportunities, as well as media, exchanges and technology.